Toyota Increases Forecast for Full Year Profit

Toyota Motor Corp has raised its forecast for operating profit for the full year by 9.1% as the sharp decline in the Japanese yen has increased the value of its earnings that are made overseas and then repatriated and makes up for lower sales in vehicles.

The largest automaker in the world now expects its operating profit to by 2.5 trillion yen or $21.86 billion for its fiscal year that ends on March 31. The previous forecast had been 2.30 trillion yen. Part of the increase is due to a contribution of 135 billion yen due to exchange gains.

The company also said it expected sales to be 9.05 million units and not 9.1 million.

Toyota has also revised its estimate for net profit up to 2 trillion yen from its original 1.78 trillion. Included in net profit are earnings made with partners in joint ventures in China.

The currency in Japan passed the 114-yen mark against the dollar on Wednesday for the first time in 7 years after the central bank in Japan eased its already very loose monetary policy.

Toyota has adjusted the dollar rate assumption from 101 yen to 104 yen for the year, leaving more room for growth in profit if the yen remains weak.

Between July and September a fall of 8% in the value of the yen combined with the company’s cost cutting, helped Toyota book earnings in the second quarter that were recording breaking.

Toyota reported a rise of 11.3% in its operating profit for the second quarter to 659.1 billion yen, in comparison to 650.6 billion by Wall Street analysts.

Net profit was up 23% to over 539.7 billion yen.

The automaker has enjoyed strong sales in the U.S., it largest market, spurred on by the economic recovery, ease of financing and the lower prices of gasoline.

Toyota also raised its forecast for sales in North America from 2.71 million to 2.74 million.

However, uncertainty looms in China over the health of the market there, where its Japanese peers Nissan Motor and Honda Motor cut outlooks pack during the past week due to an economy that has slowed down.

Toyota is aiming to boost sales in China by 20% to more than 1.1 million vehicles in 2014. Unlike Nissan and Honda, Toyota and its partners in a joint venture, China FAW Group and Guangzhou Automobile Group had experienced a gain in sales over the last few months.

Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.

Latest News

How to Trade on Forex – 8 Steps for Beginners
How to Trade on Forex – 8 Steps for Beginners
Super Nintendo World Theme Park Officially Starts Construction
Super Nintendo World Theme Park Officially Starts Construction
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Camera Zooms In and Can Recognize Faces
Camera Zooms In and Can Recognize Faces
Netflix Could See 150 Million Worldwide Subscribers
Netflix Could See 150 Million Worldwide Subscribers
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back


© 2006-2017 Ticker Report. Google+.